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FCOT posts 2.51 cents in Q1 DPU

FRASERS Commercial Trust (FCOT) reported distribution per unit (DPU) of 2.51 cents for the fiscal first quarter ended Dec 31, 2016, unchanged from a year ago.

The Reit manager's CEO Jack Lam noted that the stability and diversification of the portfolio has in particular been bolstered by the acquisition of 357 Collins Street in August 2015, which is enjoying full occupancy in a strong Melbourne market and has no leases expiring until fiscal 2018.

Gross revenue for the quarter remained steady at S$39.68 million, compared to S$39.62 million a year ago.

But net property income (NPI) for the quarter decreased marginally by 0.6 per cent year on year to S$29.21 million. This was because the higher contribution from 357 Collins Street due to higher occupancy and rental rates achieved and average stronger Australian dollar were offset by lower occupancy rates for China Square Central 1 and Central Park as well as higher marketing expenses for Central Park.

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"Stable results for the first quarter has given us a good start to the financial year," Mr Lam said. "However, we are aware that market conditions are overall anticipated to remain challenging for some time."